City cheers plan for bespoke Brexit deal on finance

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Mark Carney, left, has said maintaining open financial services trade after Brexit will benefit the UK and the EU. Philip Hammond is expected to set out a plan in the coming weeks to make this happenCredit:
Paul Grover

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Hopes have been raised that the UK will strike a bespoke deal on financial services with the EU, keeping the vital cross-Channel trade open after Brexit.

Philip Hammond, the Chancellor, is poised to launch the plan as the centrepiece of a key speech as soon as next week, proposing a system of mutual recognition in financial regulation – allowing UK and EU firms to trade freely, but crucially enabling Britain to set its own laws.

The aim is to ensure both sides base their financial regulations on the same principles, so even as precise rules diverge after Brexit the laws in each market have similar effects.

If the EU accepts the plan, it should mean both sides will be happy to allow institutions...